Stretch IRA Tax Provision Stripped from Highway Bill

Financial Services Institute / Stretch IRA Tax Provision Stripped from Highway Bill

Stretch IRA Tax Provision Stripped from Highway Bill

FSI Applauds Leader Reid on Move to Protect Hard-Working American Investors
February 22, 2012

WASHINGTON, D.C. – The Financial Services Institute (FSI) today applauded Senate Majority Harry Reid for amending the Highway Bill so that Stretch IRAs continue to be taxed over a lifetime and not the proposed five years that the bill initially called for. Over 2,000 FSI members weighed in with their members of Congress and FSI staff advocated for this provision to be stripped out.

Please see below for a statement by FSI President & CEO Dale Brown:

“With our economy in the shape it’s in, and saving for retirement more difficult than ever, it was critical that this troubling provision be stripped from the bill. The provision would no longer have permitted tax deferred stretches of IRAs for beneficiaries other than a spouse, minor children or the disabled. Others, such as adult children, would only be permitted a five-year window to defer. With the provision requiring beneficiaries to pay taxes over five years, instead of spreading them over their lifetime, this would have greatly deterred saving at a time in our nation’s history when saving is already strained to say the least. We applaud Leader Reid for taking this initiative and protecting saving in America.”

About the Financial Services Institute (FSI): FSI is an advocacy organization for independent financial services firms and independent financial advisors. Established in January 2004, we have well over 100 broker-dealer members and over 35,000 financial advisor members. Our member firms have upwards of 180,000 financial advisors affiliated with them. Our mission is to create a more responsible regulatory environment for independent broker- dealers and their affiliated independent financial advisors through effective advocacy, education and public awareness. And our strategy includes involvement in FINRA governance, constructive engagement in the regulatory process and effective influence on the legislative process. For more information, visit